Budimex recorded PLN 56.38 million of consolidated net profit from continuing operations, attributable to shareholders of the parent company in Q1 2022 compared to PLN 42.48 million of profit a year earlier, the company said in the report.
The total net profit on continued operations amounted to PLN 59.46 million compared to PLN 46.39 million. The operating profit amounted to PLN 57.44 million versus PLN 62.82 million profit a year earlier. Consolidated sales revenues amounted to PLN 1,598.99 million in Q1 2022 compared to PLN 1,244.79 million a year earlier.
“In the first quarter of 2022, the Budimex Group recorded a significant increase in sales revenues, mainly in the construction part. A high backlog of orders and relatively good weather conditions allowed the construction segment to increase its revenue by 21.7% compared to the same period of the previous year. In addition, some important road contracts implemented in the “design and build” formula are entering the implementation phase this year, which in the coming quarters will translate into an increase in sales in this area. The operational profitability and gross profitability of the Budimex Group deteriorated, mainly due to the decline in the profitability of the construction segment, ”reads the report. The war in Ukraine, which started on February 24, 2022, has no direct impact on the activities of the Budimex Group. The
Group does not execute contracts in Ukraine, Russia and Belarus. The companies from the Budimex Group also do not have a significant exposure to services provided by entities with Eastern capital. Nevertheless, the reduction of imports of raw materials used in the construction sector, including iron ore, and fluctuations in oil prices have a significant impact on the functioning of the construction sector. Moreover, an outflow of workers from Ukraine has been observed in the sector, while the scale of this phenomenon and the impact on the activity of the industry is currently difficult to assess, it was also stated.
On a standalone basis, the net profit from continuing operations in Q1 2022 amounted to PLN 51.63 million compared to PLN 220.29 million profit a year earlier.
Budimex has been listed on the Warsaw Stock Exchange since 1995. Its strategic investor is the Spanish company Ferrovial. In 2021, it had PLN 7.91 billion in consolidated revenues.